The lights are used to indicate what a seller is willing to stand behind after the auction sale. 

• A Green light signals that this vehicle is guaranteed under the conditions outlined in this policy by the seller.

• A Yellow light is an indication to the Buyer that the Auctioneer or Selling Representative has made announcements that qualify/clarify the condition or equipment and limit arbitration of this vehicle in conjunction with the green light or when “limited guarantee” is announced. 

• A Red Light means that the vehicle is "As-Is" but it also means that the seller DOES NOT need to disclose any issues with the vehicle and there is NO arbitration or negotiations after the sale. It does not necessarily mean there IS something wrong with the vehicle but it means that either the seller does not know if there is or the seller chose not to disclose that there is. 

Here are the official descriptions: https://www.naaa.com/References/reference_materials/TheValueofRiskMgmt_SalesLights_Aug2021.pdf

Vehicle grading systems at auto auctions provide a standardized way to assess a vehicle's condition. These grades, typically numerical or letter-based, help buyers quickly understand a vehicle's overall condition, including its mileage, accident history, and cosmetic and mechanical condition.  

• Grade 5 - Vehicle in excellent condition

• Grade 4 – Vehicle is better than average 

• Grade 3 – Normal wear and tear

• Grade 2 – Shows signs of excessive wear and tear 

• Grade 1 – Shows signs of severe abuse 

• Grade 0 – Vehicle is inoperative 

Here are the official descriptions: https://www.naaa.com/standards/vehicle_gradingscale.pdf